Halton Region 2020 Economic Review Message from Halton Regional Chair Gary Carr

On behalf of Regional Council, I am pleased to present the 2020 Economic Review. 2020 was a difficult year for everyone, including residents and businesses in Halton Region. Although we faced many challenges, Halton’s competitive home base for businesses across the globe, paired with supports from all levels of government, helped us continue to be one of the best places to do business in Canada. The COVID-19 pandemic had significant and widespread impacts on Halton’s business community and overall economy in 2020. Provincially legislated closures of non-essential businesses negatively impacted business operations and precipitated widespread job losses, some of which were temporary as retail businesses scaled-back in-person operations. The development community was also impacted during the year as non-essential construction activities were halted and the commercial retail sector placed expansion plans on hold. Halton Economic Development, including the Halton Small Business Centre and Global Business Centre, provided local businesses with a range of assistance and programming to support them as they adapted their business models during the COVID-19 pandemic in 2020. Halton’s Small Business Centre hosted a series of webinars to help businesses respond to the pandemic in addition to its regular seminar schedule. The Centre provided hundreds of one-on-one virtual consultations to help local businesses update their business plans, enhance their digital presence and navigate federal and provincial funding and grant programs. We’ve also seen the effects of the pandemic on employment throughout the country and within Halton. Many sectors, particularly retail and food service establishments, had to downsize their workforce and faced large-scale temporary layoffs due to the pandemic. Entering into 2020, Halton’s labour force was in a position of strength with an in-demand, highly skilled, and predominantly professional labour force. For the past 10-years preceding the pandemic, Halton’s unemployment rate averaged 5 per cent. In 2020, the unemployment rate in Halton rose to an annual average of 9.2 per cent, with unemployment reaching 13.9 per cent in the second quarter. While the full economic impact of the COVID-19 pandemic is still being determined, the 2020 Economic Review illustrates some of its effects in Halton. I encourage you to read the Review to learn more about investment opportunities across the region. For more information about available economic development services and supports, please visit the Invest Halton webpage on halton.ca. By helping businesses succeed and supporting them through this pandemic, we keep Halton a great place to live, work, raise a family and retire.

Sincerely,

Gary Carr, Halton Regional Chair Table of Contents

1 Halton at a glance 2 Halton’s economic highlights 4 Industrial and commercial development and real estate activity 7 Residential development and housing market 8 Halton within the Greater and Hamilton Area 10 Halton’s business community 12 Halton business headlines 13 Supporting local businesses through COVID-19 14 Preparing for the next phase of growth 16 Positioned for recovery 17 Our services

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A prosperous and fast Halton population forecast (thousands) growing community 1200 Located on the western edge of the 1000 (GTA), close to 800 major cities and markets in Canada and the United States and with world- 600 class educational institutions, Halton 400 is one of the most desirable places to Milton live and do business in Canada. Halton 200 has four communities: Burlington, 0 Halton Hills, Milton and Oakville. With 2001 2006 2011 2016 2021 2031 2041 2051 a population exceeding half a million Oakville Census Forecast people, Halton is one of the fastest Burlington Source: Census and Places to Grow Plan growing regions in Canada.

75% 228,400 $29B Post-secondary Total jobs 3 GDP 5 attainment 1

39.3 13, 6 4 7 #1 Average age 1 Number of employers 3 Lowest crime severity rate in Canada 4

$139,315 14,142 969 km2 Average household acres Land area income 1 Employment lands $996,930 9.2% 526 km2 Average house price 2 Unemployment rate 6 Green space

1 Statistics Canada Census. 2016 estimate. 2 Toronto Real Estate Board (TREB). 2020 average. 3 Halton Region Employment Survey 2020 . 4 Statistics Canada Crime Severity Index 2019 5 Conference Board of Canada, 2019. 2020 forecast. 6 Statistics Canada Labour Force Survey. 2020 average.

Halton Region 2020 Economic Review 1 Halton’s economic highlights

Labour market The COVID-19 pandemic has had significant impacts on employment throughout 9.2% the country and within Halton. Legislated public health restrictions in many Halton unemployment rate in 2020 sectors but particularly with respect to retail and food service establishments led Lower than GTHA: 9.4% to large-scale temporary layoffs and workforce downsizing. Entering into 2020, Ontario: 9.3% Halton’s labour force was in a position of strength with an in-demand, highly skilled, Canada: 9.3% and predominantly professional labour force. For the past 10-years preceding the pandemic, Halton’s unemployment rate averaged 5 per cent. In 2020, the 65.7% unemployment rate in Halton rose to an annual average of 9.2 per cent, with Halton participation rate in 2020 unemployment reaching 13.9 per cent in the second quarter. In comparison, the overall GTHA averaged 9.4 per cent unemployment rate in 2020 and the provincial Higher than GTHA: 64.4% and national rates were 9.3 per cent each. Ontario: 63.6% Canada: 64.1% Source: Statistics Canada Labour Force Survey

Building and development Development activity across Halton has been strong over the past number of years and the COVID-19 pandemic appears to have mainly impacted development within $2.0B the commercial retail sector. Overall, building permits issued for new construction Total construction value in 2020 and expansions continued across the region in 2020, with total building permit construction value reaching $2 billion, driven primarily by an increase in residential construction. Non-residential (industrial, commercial, and institutional) building permit construction value meanwhile decreased 30 per cent in 2020, falling from 1.7M sq. ft. approximately $704 million in 2019 to about $491 million in 2020. Commercial Total floor area approved for building permit value witnessed the highest declines in 2020, falling 34 per cent construction in 2020 from $420 million in 2019 to $279 million in 2020. The drop in commercial permit value was largely the result of the retail sector pausing expansion and renovation plans during the year due to the impacts of COVID-19 on their operations.

Source: Statistics Canada Building Permit Survey and Halton Region

Business and jobs 13, 6 4 7 Halton's diversified industrial base has long sustained a strong regional economy. Total employers across Halton Pre-pandemic, the Conference Board of Canada estimated that Halton’s GDP would reach $29 billion in 2020 and that Halton’s economy had been on a trend of in 2020 expanding approximately 3 per cent per year. However, the COVID-19 pandemic has had significant impacts on the economy, businesses and jobs. Lockdowns and non-essential business closures became widespread in the second quarter of 2020 228,400 and led to large-scale layoffs. Halton’s business community has remained resilient Total jobs across Halton however. It is estimated that there were 13,580 employers across Halton in 2020, in 2020 down slightly from 13,650 in 2019.

Source: Conference Board of Canada and Halton Region Employment Survey

2 Halton Region 2020 Economic Review Halton’s economic highlights

Halton Economic Indicators 2016 2019 2020 1-year change 5-year change Population1 556,210 596,940 610,517 2.3% 9 . 8 % Population density (per square km)2 574 616 630 2.3% 9 . 8 % Gross domestic product3 $25.9B $28.3B $29.0B 2.5% 12.0% Unemployment rate4 4.5% 4.1% 9.2% 5.1pp 8.7pp Participation rate4 67.1% 68.7% 65.7% -3.0pp -1.4pp Employment4 63.4% 65.8% 59.7% -6.1pp -3.7pp Employment Insurance beneficiaries5 3,786 3,278 5,988 82.7% 58.2% Ontario Works caseload6 2,006 2,108 2,000 -5.1% -0.3% Jobs7 224,299 241,423 228,400 -5.4% 1.8% Employers7 13,287 13,650 13, 6 4 7 0.0% 2.7% Business bankruptcy8 35 25 15 -40.0% -101.1% Total construction9 $2.1B $1.7B $2.0B 17.6% -5.0% ICI* construction9 $832M $704M $491M -30.0% -41.0% Residential construction9 $1.3B $991M $1.5B 51.6% 15.4% Non-residential total floor area (ft²)10 2.7M 2.9M 1.7M -41.3% -37.0% Industrial total floor area (ft²)10 1.1M 1.8M 1.1M -38.9% 0.0% Office total floor area (ft²)10 262,927 176,846 258,985 46.4% -1.5% Retail total floor area (ft²)10 431,294 271,630 46,714 -82.8% -89.2% New active ICI* applications11 x x 64 x x New ICI* applications total floor area (ft2)11 x x 9.1M x x Industrial availability12 7.5% 3.0% 3.1% 0.1pp -4.4pp Office vacancy13 23.7% 15.5% 16.4% 0.9pp -7.1pp Housing sales14 9,884 8,683 9,898 14.0% 0.1% Housing price14 $803,869 $852,989 $996,929 16.9% 24.0% Average days on market14 18 26 20 -23.1% 11.1% Housing starts15 3,261 2,152 4,238 96.9% 30.0% Housing completions15 3,409 3,208 3,348 4.4% -1.8%

Sources 1 Halton Region Best Planning Estimates 2 Based on 969 km2 land area 3 Conference Board of Canada 4 Statistics Canada, Labour Force Survey 5 Statistics Canada, Employment Insurance Statistics 6 Employment Halton (monthly average) 7 Halton Region Employment Survey 2020 8 Office of the Superintendent of Bankruptcy Canada 9 Statistics Canada, Building Permits Survey 10 Halton Region, Non-Residential Development Charges database 11 Halton Region, development applications. Note, figures for previous years are unavailable. 12 CBRE. Rate excludes Halton Hills in 2016. 13 CBRE. Rates in Burlington and Oakville. 14 TREB, Market Watch 15 CMHC Starts and Completions Survey * Industrial/Commercial/Institutional

Halton Region 2020 Economic Review 3 Industrial and commercial development and real estate activity

Halton’s development and real estate market The value of development across Halton increased slightly in 2020, following a dip in total construction values in 2019. This growth was driven by a very strong year in residential development. Investment in non-residential development, meanwhile, declined in 2020 despite strong demand for industrial and warehouse distribution space in Halton’s employment areas. Non-residential total floor area (TFA) associated with building permits issued in 2020 was just under 1.7 million square feet, representing a 41 per cent decline over 2019 and below the 5-year average TFA in Halton of 2.7 million square feet per year.

Total construction Total floor area

$2.0B Halton’s total building permit construction value 1.7M sq. ft. Halton’s non-residential total floor area in 2020. approved for construction in 2020.

$10.7B Total building permit construction value 13.6M sq. ft. Halton’s non-residential total floor area in Halton over past 5 years. approved for construction over past 5 years.

Five-year trends in total construction Five-year trends in total non-residential floor area value in Halton (billions) approved for construction in Halton (millions sq. ft.)

$3.1 3.8 5-year average 2.9 2.4 $2.0 $2.1 $1.8 $1.7 2.7 5-year average 1.7

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Source: Statistics Canada Building Permit Survey Source: Halton Region

4 Halton Region 2020 Economic Review Industrial and commercial development and real estate activity

Non-residential assessment

Halton Region has continued to see incremental growth in Notable Developments industrial and commercial development. Over the five year period Bailie Booster Pumping Station – upgrade, from 2015 to 2019, non-residential assessment has grown 21 per Burlington ($63 million) cent to reach more than $21 billion. All Seniors Care Living Centres – New long- Non-residential property assessment term care facility ($45 million) in Halton, 2015-2019 (billions) QuadReal – finishing retrofits to new distribution $20.4$20.7 $21.0 warehouse, Halton Hills ($32 million) $16.6 $16.7 Mapleview Shopping Centre – renovations for new tenants, Burlington ($26.1 million) 2015 2016 2017 2018 2019 Kingridge Crossing – new office complex, Oakville Source: Ontario Ministry of Municipal Affairs, Financial Information Returns ($18.3 million)

Endress+Hauser – new multi-story office/light industrial building, Burlington ($17.5 million)

Halton Regional Centre – addition to administrative building, Oakville ($17.2 million)

21% Menkes Developments – new multi-tenant Non-residential industrial warehouse, Milton ($18.8 million)

assessment growth Ashgrove Pumping Station – upgrade, Halton over 5-years Hills ($12.5 million) Fire Station #8 – new building, Oakville ($9 million)

Ismail – new office building, Oakville ($8.3 million)

Halton Region 2020 Economic Review 5 Industrial and commercial development and real estate activity

Industrial development Commercial development Total industrial floor area approved for construction in Halton There was 258,985 square feet of office space approved for declined in 2020 from 1.8 million square feet in 2019 to just over construction in Halton in 2020 and 46,714 square feet of retail, 1 million square feet. Industrial building permit construction for a total of just under 306,000 square feet of new or expanded value also decreased by 29 per cent in 2020 to $104 million commercial real estate. This decline was attributable to a significant – slightly above the five year average in Halton’s industrial drop in construction in the retail sector, wherein total floor area construction value of $101 million. built in 2020 fell 83 per cent over 2019 as the COVID-19 pandemic placed retail development plans on hold. Overall, commercial building permit construction value totaled nearly $279 million – below the five year average in Halton’s commercial construction value of $381 million.

Five-year trends in industrial total floor area Five-year trends in commercial total floor area approved for construction (thousands sq. ft.) approved for construction (thousands sq. ft.)

2,180 811 5-year average 5-year average 1,782 694 664 1,125 1,091 448 937 306

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Source: Halton Region Source: Halton Region

Five-year trends in industrial construction Five-year trends in commercial construction value in Halton (millions) value in Halton (millions) 5-year 5-year $146 average $468 average $369 $368 $420 $117 $104 $279 $72 $64

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Source: Statistics Canada Building Permit Survey Source: Statistics Canada Building Permit Survey

Industrial real estate market Office real estate market* $8.87 sq. ft. Halton industrial average net rent in 2020. $17.45 sq. ft. Halton office average net rent in 2020. Lower than GTA: $9.82 sq. ft. Lower than GTA: $18.83 sq. ft. $212.82 sq. ft. Halton industrial average net sale price 16.4% Halton office vacancy in 2020. in 2020. Lower than GTA: $233.40 sq. ft. Higher than GTA: 8.1% 3.1% Halton industrial availability rate in 2020. -64,053 sq. ft. Burlington and Oakville office floor area Higher than GTA: 1.9% absorbed in 2020

2.3M sq. ft. Halton industrial floor area absorbed in 2020 * Burlington and Oakville

6 Halton Region 2020 Economic Review Residential development and housing market

Residential development Halton’s housing market experienced one of its strongest years in 2020 as a result of the historically low interest rates and evidence of a shift in locational preferences that has been influenced by the COVID-19 pandemic toward larger living spaces and properties more prevalent in suburban communities such as Halton and away from smaller condominium units in downtown areas such as Toronto. Over the past 5 years, there were over 18,500 new housing starts and approximately 18,700 housing completions across Halton, resulting in residential building permit construction values amounting to $7.2 billion between 2016 and 2020. During this period, over 45,000 existing homes were sold at an average price of about $879,600. Halton’s continuing housing boom has resulted in a 37 per cent increase in Halton’s property tax base between 2015 and 2019 to reach approximately $127 billion in residential assessment.

Five-year trends in residential construction Five-year trends in residential property value in Halton (billions) assessment in Halton (billions)

$125 $127 $2.2 5-year average $123 $93 $94 $1.3 $1.5 $1.2 $1.0

2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 Source: Statistics Canada Building Permit Survey Source: Ontario Ministry of Municipal Affairs, Financial Information Returns

Housing market

Five-year trends in housing starts Five year trends in existing housing sales and completions in Halton and average price in Halton

6,000 15,000 $1,500 4,000 10,000 $1,000

2,000

Total Sales 5,000 $500

0 0$0 Average Price (thousands) 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Housing Starts Housing Completions Housing Sales Average Price

Source: CMHC Starts and Completions Survey Source: Toronto Real Estate Board

Halton Region 2020 Economic Review 7 Halton within the Greater Toronto and Hamilton Area

Development comparison GTHA comparison of total building permit construction value 2020 (per capita) Across the Greater Toronto and Hamilton area (GTHA), Halton's market share of the $23.3 billion in total building permit $4,221 construction value in the GTHA increased slightly to 9 per cent $3,879 $3,636 in 2020. However, comparing Halton’s total building permit $2,541 construction value to those of other GTHA municipalities on a $2,432 $2,293 per capita basis adds perspective to the scale of development occurring in Halton. Per capita, Halton ranked third after the City of Toronto and Durham Region in total building permit value in the GTHA in 2020, reaching $3,636 per capita. However, in terms of residential construction, Halton led the GTHA in 2020 with $2,740 Toronto Durham Halton Hamilton York Peel in residential building permit construction value per capita. Residential Non-Residential

Source: Statistics Canada Building Permit Survey and 2016 Census

Investment attraction

The Greater Toronto and Hamilton Area (GTHA) continues to be a desirable location for development and business investment. While the COVID-19 pandemic had significant impacts on global foreign direct investment (FDI) and is estimated by the Organisation for Economic Co-operation and Development (OECD) to have reduced FDI flows in 2020 by 30 per cent due to travel restrictions and various sectors rethinking or pausing their expansion plans, there continued to be interest in this region’s investment potential and development opportunities.

Toronto Global

Foreign direct investment (FDI) is an important element in the as border closures and other restrictions came into effect. growth of Halton’s and the broader region’s overall economies. Toronto Global maintained a flexible approach throughout the Halton Region is a member of Toronto Global, which is an past year, due to the uncertainty of the COVID-19 pandemic, in arms-length organization representing Greater Toronto Area order to be responsive to emerging opportunities and maintain (GTA) municipalities in lead generation and lead servicing existing investment prospects, many of which maintain activities to assist in bringing international investment to the their interest in the GTA but have delayed their timelines on GTA. Through Toronto Global, the unique value proposition expansion. of the GTA is marketed across key markets around the world, raising awareness and interest in bringing new investment to the GTA and Halton. After COVID-19 was declared a global pandemic in March 2020, greenfield FDI investment declined significantly worldwide

8 Halton Region 2020 Economic Review Halton within the Greater Toronto and Hamilton Area

Competitive costs Halton Region has relatively competitive costs within the context of the Greater Toronto and Hamilton Area (GTHA). Halton's municipalities have among the lowest property tax rates and development charges and they are generally below the GTHA average for both industrial and office buildings.

Industrial property tax rates across select Office property tax rates across select GTHA municipalities in 2020 GTHA municipalities in 2020

Hamilton 5.19% Hamilton 3.03% 3.55% Oshawa 2.63% Whitby 3.18% Whitby 2.36% Halton Hills 2.41% Toronto 2.17% Toronto 2.39% 1.98% Burlington 2.37% 1.90% Oakville 2.26% Caledon 1.81% Brampton 2.24% Newmarket 1.74% Milton 2.18% Halton Hills 1.68% Caledon 2.10% Burlington 1.66% Mississauga 2.09% Oakville 1.58% Newmarket 2.02% 1.58% Vaughan 1.82% Richmond Hill 1.56% Richmond Hill 1.80% Markham 1.53% Markham 1.76% Milton 1.52%

Source: From BMA Management Consulting Inc. 2020 Municipal Study. Source: From BMA Management Consulting Inc. 2020 Municipal Study. Note: Industrial property tax rates are based on large industrial use Note: Office tax rates are based on commercial office building class. (greater than 125,000 sq. ft.). Property tax rates include lower-tier, Property tax rates include lower-tier, upper-tier and education rates. upper-tier and education rates. Industrial development charge rates across Office development charge rates across select select GTHA municipalities in 2020 ($/sq. ft.) GTHA municipalities in 2020 ($/sq. ft.) Markham $40.63 Markham $40.63 Vaughan $39.37 Vaughan $39.37 Toronto $37.43 Toronto $37.43 Richmond Hill $33.31 Mississauga $33.67 Newmarket $30.50 Brampton $33.48 Oakville* $26.50 Richmond Hill $33.31 Mississauga $24.58 Oshawa $31.66 Oakville** $22.61 Newmarket $30.50 Burlington* $22.42 Caledon $27.58 Brampton $20.96 Oakville* $26.50 Caledon $20.55 Whitby $24.69 Burlington** $18.53 Oakville** $22.61 Milton* $18.52 Burlington* $22.42 Halton Hills* $17.02 Halton Hills* $21.20 Whitby $15.74 Hamilton $20.94 Milton** $14.63 Burlington** $18.53 Halton Hills** $13.12 Milton* $18.52 Hamilton $13.06 Halton Hills** $17.30 Oshawa $10.48 Milton** $14.63

* Greenfield ** Built Boundary * Greenfield ** Built Boundary Source: Watson & Associates Economists Ltd., 2020. Source: Watson & Associates Economists Ltd., 2020. Note: Includes the following where applicable – lower tier, upper tier, Note: Includes the following where applicable – lower tier, upper tier, education and average of area specific. The City of Mississauga, City of education and average of area specific. The City of Mississauga, City of Markham and the City of Richmond Hill include stormwater charges which are Markham and the City of Richmond Hill include stormwater charges which are based on land area. Rates based on current posting on May 15, 2020. based on land area. Rates based on current posting on May 15, 2020.

Halton Region 2020 Economic Review 9 Halton’s business community

Economic impact The COVID-19 pandemic has had a significant economic impact Forecasted real GDP in Halton 2015-2023 across the country, with Gross Domestic Product (GDP) falling ($ millions 2007) sharply in the second quarter of 2020 as lockdowns and non- essential business closures became widespread. Deloitte forecasts $40,000 that the national economy shrank 5.7 per cent in 2020 and would likely experience a period of strong economic recovery in the 4-5 $30,000 per cent range over the next couple of years before stabilizing $20,000 again in 2023. In Halton, a diversified industrial base has long sustained a strong $10,000 regional economy. Pre-pandemic, the Conference Board of Canada $0 estimated that Halton’s GDP would reach $29 billion in 2020 2015 2016 2017 2018 2019 2020 2021 2022 2023 and that Halton’s economy had been on a trend of expanding approximately 3 per cent per year. Using the latest national Conference Board base forecast forecasts reported by Deloitte as a proxy, however, it is reasonable Revised forecast (Deloitte January 2021 projection) to assume that Halton’s economy contracted in a similar fashion in 2020 and economic recovery may last well into 2022. Source: Conference Board of Canada

Halton COVID-19 Survey highlights Business Impact Survey In 2020, the Region partnered with the Local Municipalities to 49% of Halton businesses laid off employees survey Halton businesses on how the COVID-19 pandemic affected during COVID-19 their business operations and workplaces as well as to identify supports businesses may need as they move toward reopening 74% of Halton businesses have experienced a and recovery. Over 1,000 Halton business owners participated in reduction in sales or customers survey that ran throughout the latter half of August 2020. Survey results indicate the pandemic has had profound impacts on the 48% of Halton businesses have experienced issues Halton business community, particularly among small businesses. with financial liquidity or cash flow Over half of businesses in Halton were deemed non-essential following the legislated closure in March 2020 and faced varying 44% of Halton business owners applied for the levels of negative impact. Survey findings were considered by the Region and Local Municipalities to help inform municipal response, Canada Emergency Response Benefit recovery and advocacy efforts to the COVID-19 pandemic. 43% of Halton business owners altered their product or service offering

33% of Halton businesses considered increasing their online presence and sales capacity

10 Halton Region 2020 Economic Review Halton’s business community

Top employers (private sector)

Ford Motor Company of Canada (Oakville Assembly Complex) – headquarters and automotive assembly, Oakville (3,700+ employees)

Evertz Microsystems – headquarters and electronics manufacturing, Burlington (1,000+ employees)

Karmax Heavy Stamping (division of Magna) – automotive parts manufacturing, Milton (1,000+ employees)

Collins Aerospace – aerospace parts manufacturing, Oakville (1000+ employees)

Sofina Foods (Fearmans Pork)– meat processing, Burlington (950+ employees)

Gordon Food Service – food and beverage distribution, Milton (900+ employees)

Modatek Systems (division of Magna) – automotive parts manufacturing, Milton (900+ employees)

Innomar Strategies (division of AmerisourceBergen) – research and development in life sciences, and pharmaceutical services, Oakville (800+ employees)

Siemens Canada – headquarters and engineering technology manufacturing, Oakville (700+ employees)

Aviva Canada – insurance services, Oakville (650+ employees)

Halton Region 2020 Economic Review 11 Halton business headlines

Ford Motor Company of Canada announced historic Spark Power broke ground on new Oakville headquarters investment in Oakville Assembly Plant securing The new 40,000 square foot headquarters at 1314 North Service Road thousands of jobs in Oakville is set for completion in 2022 and will feature a state-of-the- Ford will be investing $1.8 billion to transform its Oakville Assembly art training centre and many sustainability features. Plant to become the first in Canada to build fully electric battery DSV Canada officially opened headquarters in Milton vehicles starting in 2024. Federal and Provincial governments are helping finance the conversion that will secure thousands of jobs in Global transport and logistics firm, DSV, moved into their new Halton and across the province. Canadian head office and state-of-the art 1.1 million square foot logistics facility in Milton’s Derry Green Business Park, serving Prodigy Education secured landmark investment that business-to-business (B2B) and business-to-consumer (B2C) markets in will help to double workforce Southern Ontario. Prodigy Education – formerly Prodigy Games – announced it had Toromont CIMCO announced it would be moving into raised $159 million in U.S. private-equity investment that will help new headquarters in Halton Hills Prodigy to achieve its goal of doubling in size to 800 employees in 2021. Prodigy was named by Deloitte as one of Canada’s fastest- The company plans to open an 84,000 square foot manufacturing growing companies in 2020 and Canada's fastest-growing software facility in Halton Hills’ Premier Gateway employment area, a move company for the second year in a row. which is anticipated to create more than 200 jobs. BDO bringing 500 new jobs to new office building in Haywood Gordon announced expansion in Halton Hills Oakville Industrial pump and mixer manufacturer, Haywood Gordon, broke Leading accounting and advisory company, BDO, announced ground on a 12,000 square foot expansion at its manufacturing plant they would be leasing 65,000 square feet in Hood Development’s in Halton Hills to accommodate increased demand. new “Class A” office building at 360 Oakville Place Drive in Oakville, Burlington's PV Labs received investment from bringing up to 500 new jobs. Lockheed Martin Federal government invested $3.1 million in Burlington’s The $4 million USD investment will help to further expand research Formula Solutions Inc. (FSI). and development on their patented Fifth-generation Advanced The investment in FSI will help the company expand production of Stabilization Technology (FAST) along with the development of high complex aircraft components and add an additional 70 high-skilled resolution, long range optical sensors. The investment was anticipated jobs. to nearly double PV Labs workforce in Burlington. Terrestrial Energy announced investment will help bring Drone Delivery Canada (DDC) and Milton’s DSV Canada small clean nuclear reactors to market partnered to deliver healthcare cargo A $20 million investment from the federal government will The commercial agreement saw DSV deploy DDC’s Sparrow cargo accelerate development of small modular reactor technology. The drone to deliver healthcare related cargo from DSV’s logistics facility company has committed to creating and maintaining 186 jobs and in Milton to a “DroneSpot” at Reckitt Benckiser in Milton. This was the creating 52 co-op positions nationally. second drone delivery route DSV had established with DDC.

12 Halton Region 2020 Economic Review Supporting local businesses through COVID-19

Regional and Local Municipal support Halton Economic Development, including the Halton Small Halton businesses stepping up Business Centre and Global Business Centre and in collaboration with Local Municipal Economic Development, provided a range of to help in the fight COVID-19 business assistance and programming to support Halton businesses Halton businesses also joined the fight against COVID-19 through the COVID-19 pandemic in 2020. in a variety of ways including pivoting their operations Halton Region’s response for business support and economic to produce personal protective equipment (PPE) and recovery was coordinated through the Regional Economic Action plexiglass screening, delivering financial advice to Team (REAT), an internal task force assembled in April 2020. Chaired frontline healthcare workers and providing engineering by Economic Development, the cross-departmental action team expertise to help other companies produce PPE. Some monitored Halton’s economic impacts and recovery and provided notable examples include: recommendations on Regional initiatives and responses to help Astound Group – Plexiglass screening to protect support Halton businesses and residents through the economic front-line workers from exposure to COVID-19. aftermath of the pandemic. The Halton Small Business Centre hosted a series of webinars Burloak Technologies – Partnered with Mohawk designed to help businesses respond to the pandemic, reopen College to produce face shields for healthcare workers. and operate safely. The Small Business Centre helped local small DSV Logistics – Kept PPE supply chain strong by businesses navigate federal and provincial COVID-19 funding and shipping millions of units of PPE across Ontario grant programs, assist with updating business plans, and enhance digital capabilities and marketing tactics to respond to the impacts C.G.A. Ironworks – Retooled to make face shields. of the pandemic. Ford Motor Company of Canada – Donated N95 masks and gloves to hospitals. Engineers from the Oakville plant assisted other manufacturers of PPE in Canada in exploring solutions. Keter Canada – shifted production to face shields for Halton long-term homes KPMG, Deloitte, Ernst and Young, BDO, PwC, Grant Thornton, MNP and others offered free tax return preparation to health care workers. Promation – Partnered with a local laser cutting company to manufacture 650 face shield frames per day using 3D printing technology. Q Designs – Recruited entire team and some volunteers to create masks and scrubs in their own homes using material normally used for curtains. Stitch It – Produced masks for businesses made from a surgical grade fabric. Superior Glove – Produced hand sanitizer and PPE and donated 48,000 pairs of disposable gloves. Virox Technologies – Scaled operations to provide disinfecting solutions, protocols and education to combat transmission of COVID-19.

Halton Region 2020 Economic Review 13 Preparing for the next phase of growth

Regional Official Plan Review Infrastructure investment Halton’s Regional Official Plan Review (ROPR) is currently in Halton is committed to ensuring that the necessary infrastructure Phase 2 of the review process, which focusses on research and services are in place to support the economic growth of and technical analysis of key themes such as growth and the Region. This includes investing and delivering on capital development. Under Phase 2, planning and policy elements of improvements that continue to attract new business and ensure the Regional Urban Structure, including Employment Areas, are that Halton maintains its attractiveness as a top-tier location for explored to influence the objectives of the Integrated Growth investment. The Halton Region Budget and Business Plan 2021 Management Strategy. This strategy will lead to a Preferred presents a 10-year capital plan with a projected cost of $4.4 Growth Concept, which will set out how and where growth billion. Half of the 10-year capital plan projected cost ($2.2 billion) will be accommodated in the Region to 2041. In May 2020, is expected to address growth infrastructure needs. The Region’s Regional Council endorsed Reports LPS41-19 and LPS44-20, plan to deliver high quality infrastructure is key to meeting the which identified scenarios that addressed the Provincial Growth 2051 growth targets set out in the Provincial Growth Plan. Program Plan requirement for Halton Region to accommodate 1 million expenditures for infrastructure between 2021-2030 included people and 470,000 jobs into 2041. investment in water ($982 million), wastewater ($1.2 billion) and In June 2020, the Province released their proposed Amendment transportation ($1.7 billion). No. 1 to the Growth Plan 2019. The amendment to the existing 2021-2031 capital infrastructure project highlights include: Plan extends the planning horizon from 2041 to 2051 and • $256.1 million for Trafalgar Road identifies population and employment forecasts to 2051. On • $206.0 million for Regional Road 25 July 15, 2020, Staff brought Report LPS56-20 to Regional Council to explore issues and options that represent a range of choices • $143.0 million for Tremaine Road in considering how the Regional Official Plan can achieve • $137.0 million for conformity with the Provincial policies and continue to meet the • $127.1 million for Upper Middle Road needs of our community today and in the years ahead. • $113.9 million for James Snow Parkway • $110.0 million for Roads Resurfacing Program and related works • $93.4 million for Dundas Street

14 Halton Region 2020 Economic Review Preparing for the next phase of growth

Employment lands Halton Region is committed to delivering investment-ready employment Halton Employment Land lands and facilitating the development of non-residential projects. There are Concierge fourteen existing and seven planned employment areas located throughout the region, representing 14,142 acres. As of 2020, 8,673 acres within Halton’s Halton Region’s Strategic Business Plan 2019 – 2022 employment areas are fully developed and 5,471 acres, or 39 per cent, are identifies the stimulation of job growth and economic vacant. Within currently vacant employment areas, there are approximately development as a key objective. In support of this 1,144 acres that are serviced and ready for development (shovel-ready). The strategic objective was the establishment of an largest proportion of those shovel-ready lands are located within Milton’s employment land concierge function to facilitate Derry Green Business Park and the Premier Gateway Business Park in Halton non-residential development. The employment land Hills which offer opportunities for large-scale industrial development. With concierge function enhances the Region’s continued respect to office development, Halton’s shovel-ready supply is concentrated in Oakville’s Burloak and North Oakville employment areas and Burlington focus on streamlining business processes to improve Q.E.W. East employment area. customer experience and the streamlining of the development review process Launched in early 2020, the Region’s employment Halton non-residential development land concierge service is available to all non-residential applications development applicants proceeding through Halton Region’s development approval process in order Halton Region is a growing community that aims to meet the targets set to facilitate a high degree of customer service and out in the Provincial Growth Plan and manage the strategic direction of timeliness. The employment land concierge provides non-residential development through the Regional Official Plan (ROP). an ongoing liaison at the Regional level, ensuring that There were 110 non-residential development pre-consultations held in 2020, applicants are continually apprised of the status of representing over 6.6 million square feet of prospective non-residential their application and provides a channel for applicant development. In total, there were 151 non-residential development applications actively going through the Regional approval process in 2020, feedback regarding the Regional approval process, representing over 15.3 million square feet of proposed development, most issue identification and timelines. of which is in the industrial (warehousing and logistics) category.

Non-Residential Development Application Summary, 2020

Active applications Approved applications Pre-consultations in 2020 Type Pre-2020 New in 2020

#TFA (000s) #TFA (000s) #TFA (000s) #TFA (000s)

Industrial 37 4,754 sf 30 4,334 sf 31 8,030 sf 5203 sf Commercial 56 823 sf 41 1,148 sf 23 829 sf 2235 sf Institutional 17 1,040 sf 16 726 sf 10 248 sf 12 sf Total110 6,617 sf 87 6,208 sf 64 9,107 sf 8440 sf

TFA = total floor area; sf = square feet

Source: Halton Region

Halton Region 2020 Economic Review 15 Positioned for recovery

Halton has the right environment for businesses to recover ​ and thrive after COVID-19 The global COVID-19 pandemic has had significant economic impacts throughout the country and in Halton. The extent of these impacts on Halton’s business community and economy are yet to be fully understood. However, Halton Region is fortunate to have entered into the pandemic from a position of economic strength and stability and is well-positioned for economic and business recovery. Halton’s many desirable attributes have long attracted talent and investment to the region and built a diverse and resilient business community. Halton Region has supported its residents and business community throughout the COVID-19 pandemic and will continue to provide a supportive business environment for economic recovery.

Diverse and balanced economy Supportive business environment Halton is home to a diverse range of businesses from a Halton Region advocates on behalf of residents and businesses variety of sectors including advanced manufacturing and for support from the Provincial and Federal governments and automotive, life sciences and health care, professional legislative and policy change on issues that have been identified services and finance and technology. Halton’s diverse as important to residents. Throughout the past year, the Region economy is resilient and well-positioned for recovery. has advocated on augmenting and extending various senior government business support measures, including the Digital Highly educated workforce and Main Street program and sick pay for workers. In 2020, Halton talent pipeline Region also advocated for rural broadband connectivity and Halton businesses continue to benefit from access to talent. supported programs and proposals to improve rural broadband 75 per cent of Halton residents hold a post-secondary internet and cellular coverage across the region. The Region education and 1 in 5 residents hold a diploma in one of continues to advocate for these and other measures to ensure a the STEM professions (science, technology, engineering high-quality of life for residents and a business community that and math). Sheridan College and McMaster University’s can thrive in a competitive digital economy. DeGroote School of Business both have campuses in Halton, and 20 postsecondary institutions are within commuting distance. Wilfrid Laurier University and Conestoga College are planning expansions into Halton and Brock University has also announced its intention to relocate a satellite campus to Burlington by 2022. Access to major markets With easy access to 400 series highways, rapid transit, Pearson International Airport, U.S. border crossings, and downtown Toronto, Halton has the locational advantages for business investment and expansion, plus prime real estate and employment lands to realize those development opportunities.

16 Halton Region 2020 Economic Review Our services

Invest Halton Investment, insight and concierge services • Employment Land Concierge services • Investment and site selection assistance • Coordination of site visits and tours • Statistics on Halton’s economy and demographics • Business expansion and relocation assistance • Employment land development monitoring • Industry and workforce analysis • Liaison between government agencies, industry organizations and local businesses

Halton Small Business Centre Entrepreneurship services • One-on-one business consulting and coaching • Assistance with business and name registration • Information about government programs and funding opportunities • Seminars, mentoring and grant programs • Youth entrepreneur programs • Resources, templates, publications and business directories

Halton Global Business Centre Export and import services • Free one-on-one export counseling and market entry support • Workshops, seminars and entrepreneurship programs • Information and referrals to government agencies and programs • Networking opportunities • Tools and resources

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